M7 Real Estate has acquired Broadheath Network Centre in Altrincham, Greater Manchester, for £47m from Network Space Developments on behalf of the newly formed pan-European industrial and logistics joint venture between Oxford Properties and AustralianSuper.
The acquisition of the circa 206,000 sq ft new multi-let industrial estate is the first undertaken by M7 on behalf of the JV, which launched last week.
Network Space Developments acquired the site in 2021 and has developed 25 high-specification units on it ranging in size from 2,080 sq ft to 41,738 sq ft.
The units, which were built using recycled steel and concrete, have received BREEAM Very Good and EPC A ratings.
The estate is currently 66% let with key occupiers including Maersk, National Trust and Xpand Logistics. M7 will undertake an active asset management strategy to lease up the remaining vacant space and drive the income profile of the asset.
David Ebbrell, CEO of M7 Real Estate, said: “This acquisition is our first investment on behalf of the newly formed European industrial and logistics strategic partnership with Oxford and AustralianSuper announced earlier last week. To have concluded this transaction so soon after agreeing that joint venture underlines the strong ambitions we all have to grow the ESCIP platform.
“The Broadheath Network Centre typifies the type of asset we want to add to this portfolio, being a prime last-mile asset in a high growth urban logistics location within a strong and affluent regional city. We now look forward to leveraging the M7 team’s asset management expertise, building on the leasing momentum already achieved by Network Space Developments, to let up the remaining vacant space. At the same time, we are actively pursuing high-quality urban logistics assets in key European markets, aiming to capitalise on robust occupier demand.”
Alicia Peters, vice president of logistics and residential at Oxford Properties, added: “This transaction, coming days after the formation of the joint venture with AustralianSuper, is a real statement of intent as we look to grow ESCIP into a leading, €4.5bn, pan-European logistics portfolio over the next three to five years. We believe this is an attractive moment in the cycle to deploy capital into European logistics and our high conviction investment strategies.”
Stephen Barnes, managing director of Network Space Developments, said: “We are delighted to have sold Broadheath Network Centre to M7 and Oxford. Completed in March this year, the scheme is already 66% let including two further lettings completed in recent weeks, achieving a new headline rent – a testament to the quality of the scheme, its location, design and sustainability credentials. The scheme’s delivery is the result of a well-established and successful partnership between ourselves, Trafford MBC who have provided debt finance, and the principal contractor Bansco.”
M7 Real Estate was represented by Savills, Jones Day, Deloitte, TFT Consultants and Nova Ambiente. Network Space was represented by B8RE, Gateley and Grant Thornton.
